When we succeed you succeed
Our fund managers have significant investment in Ryan Mortgage, which means when they succeed you succeed.
Frequently Asked Question (FAQs)
In this section, you will find answers to the most frequently asked questions (FAQs) about Ryan Mortgage. If you still can’t find the answer to your question after reviewing our FAQs below, please contact us and we’ll have the answer.
How long has management of Ryan Mortgage been in business?
It was incorporated in 1984 and has been in the mortgage brokerage and lending business ever since. Over CA$1 billion in mortgages have been arranged and funded.
What is a Mortgage Investment Corporation (MIC)?
A MIC is a company created specifically for mortgage investment and lending in Canada. For borrowers, MICs are a valuable source of alternative financing that can be more flexible than the big banks. For investors, MICs can be a way to invest in a diversified and secured pool of mortgages.
How does the investment work?
1. When you invest in Ryan Mortgage, your money is pooled together with other investors’ funds. We use that pool of funds to loan money to select borrowers that fit our lending criteria.
2. When we lend money, we place a mortgage on the borrower’s property and the borrower makes payments of interest and principal back to Ryan Mortgage. The mortgage is our security – there is always property backing the loans. Also, since we have several mortgages outstanding at any given time, your investment is not tied to any one borrower – it is diversified.
3. Ryan Mortgage then pays 100% of the net income (after all expenses and fees) from those mortgages back to our investors.
Can shares in the Ryan Mortgage be invested through an RRSP, RESP or TFSA account?
Yes, shares of a Ryan Mortgage are qualified investments, with certain restrictions. However, not all financial institutions will accept registered investments in Ryan Mortgage. Ryan Mortgage is happy to provide a list of providers who accept all registered investment products.
How does an investment in a MIC compare to other, traditional, investments?
Most other investments, such as stocks and bonds, are affected by factors that may not be directly related to the investment itself; factors such as investor sentiment and broad market performance. This can make traditional investments volatile and uncertain.
By contrast, real estate returns tend to be less volatile. Since the performance of a MIC is directly related to its portfolio of mortgages, a MIC can often provide a higher dividend payout than other investments, with less volatility and uncertainty.
Who can invest in Ryan Mortgage MIC?
An investment in Ryan Mortgage is available to residents of Alberta, British Columbia and Ontario and must be made on a private placement basis. Please contact us for more information regarding your specific circumstances.
What are some of the benefits of investing in the Ryan Mortgage MIC?
The Ryan Mortgage MIC provides an opportunity to diversify your investment portfolio. It’s also an option that can provide security and robust returns without the troubles of a direct investment in real estate.
Is this investment secure?
An investment in Ryan Mortgage MIC is secured by mortgages placed on residential and commercial properties, and often by additional security such as personal and corporate guarantees, general security agreements and assignments of material contracts such as insurance policies. The Ryan Mortgage team includes experienced underwriters in the loan approval process, and the approval process for all lending is rigorous. We are confident in Western Canada’s real estate values and while this investment is not guaranteed, we invite you to contact us to determine if the investment is suitable to you.
What experience and qualifications does management have?
The members of our management team have decades-long backgrounds in the financial industry and in the lending business. Collectively, we have over 100 years of combined deep understanding of both capital and real estate markets, which has provided us with extensive expertise in raising and managing investment capital, and in providing the information and services that investors need and expect.
What kind of mortgages does Ryan Mortgage invest in?
A MIC portfolio can include everything from mortgages on residential property to commercial and development mortgages on new projects. We expect that up to 75% of our investments, over time, will be in second mortgages on residential developments. The remainder will be in first mortgages and other financing opportunities. Every investment is based on a thorough investigation of the property.
When are dividends distributed?
Dividends are distributed monthly, with an annual top-up post audit.
How do I redeem funds?
Mortgage investment funds are not meant for a short term investment timeline. The speed at which we are able to redeem shares are a function of the volume of redemption requests and the available cash held within the fund. Historically, Ryan Mortgage has been able to redeem funds within 2 weeks of a request – however, our documentation requests a years notice to redeem.
Are shares listed on the stock exchange?
No. The MICs are private companies and shares cannot be traded.
Why are MIC dividends reported as interest income on my T5?
MICs have a special status under the Income Tax Act. The Act provides that the MIC can pass 100 per cent of its income along to shareholders without payment of corporate income taxes. As no corporate taxes have been paid, there are no dividend tax credit implications and so for clarity, the Canada Revenue Agency has directed that the income be reported as interest income.
Are the rates of return guaranteed?
No. This is not a GIC or bond investment. The yield is determined entirely by the performance of the investments in the fund.
Who are the borrowers? What is the expected return on my investment?
Borrowers are those who do not meet the narrow parameters of traditional lenders and the chartered bank guidelines, despite an ability to manage timely payment, and equity in real estate as security. With recent tightened lending rules being imposed on financial institutions by the federal government, many borrowers have turned to a MIC for alternative borrowing solutions. Industry trends are creating growth opportunities for non-bank lenders.
Why doesn’t my financial advisor recommend investing in a MIC?
Your financial advisor is most likely paid in one of two ways; by commissions when you initially purchase investments, or by trailer fees on investments he or she purchased for you in the past. Ryan Mortgage MIC does not pay Financial Advisors fees to sell shares in the MIC. Therefore, your financial advisor has no financial incentive to recommend the MIC.
Is Ryan Mortgage Income Fund MIC the right investment choice for me?
Investing in a MIC is not for everyone. Your current net worth, income needs and risk tolerance are just a few of the many factors to determine if this is the right type of investment for you.
We would be happy to sit down with you to discuss your potential investment.
What are the benefits of MIC investing?
- Real Estate Security: Mortgages purchased by the MIC are secured by Canadian Real Estate.
- RRSP / TFSA / RESP / LIRA / RRIF Eligible: Click here to view options for investing.
- Consistent Returns: Click here to view Annual Rate of Returns.
- Professional Management: The Principals of Ryan Mortgage MIC have a combined 100 years of mortgage & investment experience.
- Diversification: Click here to view our Fund Profile.